Volvo is giving itself another decade before it commits to selling only EVs

Volvo is pushing back its deadline to sell only electric vehicles, now saying it will rely on a mix of hybrids and battery electric vehicles. The company says it will achieve "net zero greenhouse gas emissions" by 2040.

Three years ago, the Swedish automaker made a commitment to only sell EVs by 2030. Since then, EV sales have exploded, but a recent slowdown in growth is leading many manufacturers to reconsider their pledges.

Volvo blamed the readjustment on a number of factors, including "slower than expected rollout of charging infrastructure, withdrawal of government incentives in some markets and additional uncertainties created by recent tariffs on EVs in various markets."

Volvo is now among them, arguing that it will be a combination of hybrid and pure battery-electric vehicles that help it reach its goal. The company says that it aims to have 90-100 percent of its sales comprise EVs and plug-in hybrid vehicles by 2030. It says the remaining amount will comprise of mild hybrid vehicles that use a small gas engine to power the vehicle's battery.

By 2025, Volvo says it expects the percentage of "electrified products" to come in between 50 and 60 percent. The company currently sells five fully electric cars, including the XC40 Recharge, C40 Recharge, EX30, and EX90. Some of the company's models have been delayed by software problems and trade disputes. Volvo is owned by Geely, which is one of China's top auto manufacturers.

Volvo said its share of fully electric cars stood at 26 percent during the second quarter of 2024, which it claims is "the highest share among all its premium peers." Its electrified share - EVs and plug-in hybrids - accounted for 48 percent.

Volvo isn't alone in rethinking its commitment to go all-electric. Ford, Mercedes-Benz, General Motors, and Jaguar Land Rover have all scaled back plans for EV production, delayed factor construction, or canceled certain models. Tesla, which still controls half of the market in the US, said at the start of the year that it was preparing for a slower year of growth.

Correction September 4th: A previous version of this story incorrectly said that Volvo aimed to sell only electric vehicles by 2040. The company hopes to reach net zero greenhouse gas emissions by that year.